S&P500: Will the Positive Bias Return to WallStreet?

10 abr

Important U.S. manufacturing and inflation data for the month of March will be released this afternoon. On the sidelines, the American Bank Lenders Association (MBA) loan purchase index will be released to provide additional insight into the impact of household debt. The afternoon will close with U.S. crude oil stockpiles and end the afternoon with Chicago Fed President Austan D. Goolsbe and the FOMC data release.

S&P500 (Ticker AT: USA500) and the US equity markets closed the day slightly in positive after starting the session with a -1.23% bump after which the index in the late afternoon was able to recover just before the end of the day ending the day up +0.14% closing at 5,209.91 points. On a technical level since the end of March the index has been in the middle zone of a long term range, having created a relatively stable trading zone between 5,280.97 and 5,124.80 points. It is likely that if this afternoon's data accompanies the market in positive, and shows a solid economy, the US indices will regain their tone and try to look again for the 5,258.28 points that are last Thursday's price zone, to test if it has enough strength to try to look for higher price zones.

If we look at the RSI at the moment it is at the trading average with 55.80% and the price bell indicates that it is not likely to pass given that it marks 5207 points the strongest checkpoint zone.

Ion Jauregui - AT Analyst






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